A large amount of savings

Matilda1975

Hello everyone. I hope you're all good. Me and my brother are selling our Aunt's house so that we can pay for her Nursing Home care. Once the house is sold we'll have a fair amount of money to put somewhere but we dont want to tie it up as we'll need the money for her care. What would you do with 10's of thousands of pounds in this circumstance? Thanks, Mattie

RobM99

I think we need more detail here.

msallen

You can only really put this into savings (as opposed to investments) so your best bet is probably to work out how much you need and when - for example anything you need in the next 6 months (plus a little more for contingency) should go into the best easy access account, then anything you need over the next 6 months into a fixed six month account (assuming you can get a better rate on that than on easy access). Anything for the next year into a one year fixed account ... etc etc

Keep_pedalling

How much are you expecting to get from the sale? What is the weekly care home cost and how much of that is covered by income? 

Albermarle

Basically you have to use safe savings accounts, some in easy access and some in one, two , three year fixed rates.
You should not have more than £85K with any one institution.
Whoever 'owns' the savings ( it is not clear from your post) might have to pay some tax on them.
Savings accounts: 2.5% easy access or up to 5.05% fixed (moneysavingexpert.com)

xylophone

I am assuming that you and your brother have Power of Attorney for your aunt.

Does she have state /private pensions/other income?

Is she eligible for Attendance Allowance at lower or upper rate?

Is she eligible for a nursing care component (paid to the home but usually enables downward adjustment of fees).

You need to calculate how far this will pay for her care and what will be needed by way of top up.

If the proceeds of sale are to be kept in savings accounts, you will need to open these with the institutions selected as PoA for your aunt.

Be sure to obtain properly certified copies of the PoA as the institutions may well require sight of the documents.

https://moneyfacts.co.uk/savings-accounts/

CheekyMikey

Have you thought about renting the house? Depending on the circumstances the income could cover much of the care costs whilst preserving the house as an asset..

Matilda1975

Thank you all very much

Yes we have LPOA

She has SRP and a small private pension plus AA lower rate

Not needing nursing care atm

I think the care home is around £1K a week so her income of around £2400.00 a month will need topping up by about £1600.00 a month from the sale of the house money. We hope to get about £185,000.00 from the sale.

Matilda1975

Apparently we'd only get £1000.00 a month in rent

steveksullivan

Look into whether your local council runs the scheme to 'lend' you the balance of the care home costs so you can initially rent the property out - the money is repayable when the house is eventually sold.

I know a lot (if not all...?) councils offer this but it is not well publicised. This is what we did with mums house.....

Edit: just Googled it ....it's called a 'deferred payment agreement' not saying it is necessarily right for you but it's an option .... here's a link describing it ...

https://www.moneyhelper.org.uk/en/family-and-care/long-term-care/deferred-payment-agreements-for-long-term-care

Band7

Matilda1975 said:

Apparently we'd only get £1000.00 a month in rent

Do you really want to become landlords? What if you get rogue tenants who do not pay, or who trash the place?